Residential & Commercial Transit-Oriented Development at James Center North (Aviva Crossing) Parcel A
The submission period ended on February 9, 2024, 3:00 pm.
Tacoma Housing Authority is seeking proposals for future development of Housing and Commercial/Retail at James Center North (JCN) Aviva Crossing Parcel A, facing Mildred St, across from Tacoma Community College. THA is hoping to find a developer who can deliver 150-200 new housing units alongside commercial/retail requirements, with expected rental housing affordability on the site. THA will sell the property as-is to the chosen partner for development.
Proposals must be received no later than 3 PM Friday, February 9, 2024.
Summary
| List Price | Subject to Offer |
| Site Area | 64,366 SF |
| Lot Area | 45,402 SF |
| Zoning | CCX (Community Commercial Mixed-use District) |
| Property Overview | Transit-oriented Development opportunity with a minimum requirement of 40 residential units per acre and no density maximum, close proximity to Tacoma Community College, freeways, shopping, and retail |
| Leases | Site is currently cash flowing with five existing and one pending business leases; all leases are triple net with a 3% annual rent escalator; 2023 GPR is ~$220,000 with CAM at ~$80,000; all leases expire no later than 12/31/2027; THA’s expectation would be that once leases are satisfied or bought out with tenant approval, design and/or construction begins |
| Seller Transparency | THA is committed to providing chosen developer with all site information for due diligence; site infrastructure/utility upgrades are being designed/constructed and developer cost-share will be levied |
THA Priorities
| Developer Profile | Locally and/or BIPOC owned as primary respondent, partnerships encouraged. |
| Unit Mix | Mixed-market unit profile with maximum affordability is expected; THA is looking forward to innovative and impactful affordability outcomes. |
| Partnerships | Creative development partnerships addressing gaps in experience or financial capacity are encouraged, depending on developer profile; THA is also hopeful that responders find ways to produce unique and creative proposals that include community inclusive partnerships for the stabilized property. |
| Aviva Crossing Masterplan | THA and community partners completed a robust engagement effort resulting in a masterplan that envisions a walkable, accessible, urban space; it is THA’s expectation that the chosen developer will utilize the masterplan to inform design guidelines and community ethos in the submitted proposal. The masterplan is provided with this RFP below. |
Project Description
JCN Aviva Crossing is an envisioned community that will provide diverse mixed-income housing opportunities and communal open and green space designed with pedestrians and environmental sustainability in mind. Conceptualized by a robust community engagement process, JCN Aviva Crossing is a Transit-oriented Development site as it is located within a block of the Pierce Transit Park and Ride. This location is the future final stop for Tacoma Link Light Rail. The property is identified as a Mixed-Use Center by the City of Tacoma. This classification allows multifamily projects to apply for a 12-year property tax exemption from the city (MFTE Program). To qualify for the 12-year exemption, at least 20% of the newly created units must be priced (rented) at 70% of adjusted median income. THA would expect that without significant subsidy, proposals would incorporate the MFTE program.
The combination of creative design, location and place making will create a successful mixed-income, mixed-use, transit supportive destination for West Tacoma.
Location Description
JCN Aviva Crossing is within a Community Crossroads Center, as designated by Pierce County and the City of Tacoma. This will promote opportunity for a mix of uses and housing types with connections to recreational, cultural, and environmental amenities. The designation spans across three municipalities: City of Tacoma, City of University Place, and the City of Fircrest.
Population (zip code 98465):
| Total population | 7,524 |
| Average age | 41.8 |
| Average age (Male) | 40.7 |
| Average age (Female) | 44.3 |
Households and Income (zip code 98465):
| Total households | 3,498 |
| # of persons per HH | 2.01 |
| Average HH income | $65,143 |
| Average home value | $394,700 |
*Demographic data derived from the 2020 US Census and supplemental ACS surveys
- Company information. Please provide company background, mission, completed and pipelined projects, and any other relevant information.
- Development concept. Do you have any ideas on the type of residential project you would like to consider? Do you have plans to incorporate equity and community need in your proposal? What community partnerships are you considering? Do you have creative ideas for the required commercial space? Are you prioritizing sustainability?
- Affordability. Please include information on how you plan to provide affordability and how many total residential and commercial units you estimate being able to provide (including how many affordable units). Please explain the financial models that inform your scenarios.
- Purchase Price. Provide a realistic purchase value in line with your proposed unit mix and financial realities, including scaled affordability scenarios.
- Earnest money. If chosen to enter a contract with THA, what is your proposed earnest money amount?
- Timelines. Please provide the following timelines for project milestones (no dates needed, just expected project timeframes, i.e. 8 months to complete design).
- Feasibility/Due Diligence
- PSA Closing
- Financing/funding
- Design and permitting
- Construction
Additional Responsible Bidder Requirements:
Being a responsible bidder/offeror means satisfying at least the following criteria:
- does not discriminate on the basis of race, color, ethnicity, national origin, sex, gender identity, sexual orientation, disability, marital status, familial status or veteran status.
- have adequate financial resources to perform the contract, or the ability to obtain them.
- be able to comply with the required or proposed delivery or performance schedule, taking into consideration all of the bidder’s/offeror’s existing commercial and governmental business commitments.
- have a satisfactory performance record.
- have a satisfactory record of integrity and business ethics.
- have the necessary organization, experience, accounting and operational controls, and technical skills, or the ability to obtain them.
- have the necessary production, construction, and technical equipment and facilities, or the ability to obtain them.
Appeals Process:
THA shall use the following formal appeals procedure for solicitations/contracts of more than the Simplified Acquisition Threshold of $250,000.
- Any protest must be in a writing and received by THA’s Contracting Officer before the earliest of the following deadlines:
- If the protest challenges the solicitation, before the due date for receipt of bids or proposals.
- If the protest challenges an award of a contract, within two business days after the bid opening PROVIDED THA’s Contracting Officer must receive the protest before THA signs a contract with the successful bidder, even if that occurs within two business days of the bid opening.
- All bid or award protests shall include at a minimum: (1) a detailed and clear statement of facts that the protesting party believes supports its position, (2) an identification of the terms from the procurement solicitation and/or the legal authority that supports the protest, and (3) copies of pertinent documents or other materials pertaining to the protest.
- The Contracting Officer or his or her designee may, at his or her sole discretion, suspend the procurement pending resolution of the protest, if warranted by the facts presented.
- The contractor or THA’s Contracting Officer may request that the parties confer to discuss the claim. Upon the receipt of such a request, the parties shall convene for that purpose within a reasonable period of time.
- The Contracting Officer shall issue a written decision on the matter to all concerned parties. His or her decision shall be final. State law shall govern any court action concerning a protest.
- If the bidder appeals a determination of non-responsibility in a timely and appropriate way under the procedures for doing so, THA must consider the additional information before issuing its final determination. If the final determination affirms that the bidder is not responsible, THA may not execute a contract with any other bidder until two business days after days after the bidder determined to be not responsible has received the final determination.
- The successful bidder will be notified in writing no later than March 29th, 2024. The notification will include the terms and conditions of the contract, including the start date, duration, and payment terms.
Submission Deadline:
All proposals must be received no later than February 9th, 2024 at 3:00PM (PST), via email at gpeck@tacomahousing.org. Late proposals will not be considered.
Evaluation Criteria:
Proposals will be evaluated based on the following criteria:
- Company and personnel experience and qualifications (20pts)
- Locally and/or BIPOC owned as primary respondent (OMWBE designation is considered) (10pts)
- Plan for hiring local and diverse workforce (10pts)
- Affordability of housing units (20pts)
- Partnerships and creativity (20pts)
- Financial plans and capacity (20pts)
Frequently Asked Questions
Is there any other information that can be shared about the one “pending” lease? Is it the commencement of a new lease, or the end of an existing one?
The pending lease didn’t come to fruition.
Have conversations been held with commercial tenants about relocation or redevelopment? Are they open to the idea of vacating the site?
Tenants are aware that THA is developing the property. We’ve promised that the existing leases will be honored by the buyer. All leases expire on December 31, 2027. Leases exclude relocation terms.
What type or level of proforma is preferred? Is there a specific workbook you’d like us to provide?
We have no specific expectations or ideas of the levels of proforma. We are simply looking to ensure that the proposal is financially feasible.
In efforts to understand the potential partnership between XXX and THA post-award (as to be proposed in our RFP response) is THA open to accepting grants on behalf of the project?
Without knowing more about the context and background of structure or grants, we can’t answer this question. However, THA regularly works to ensure that our mission is fulfilled, and in doing so regularly receives and administers grants. Generally, we would be receptive to grant funding in support of the project, but final approval of this idea would depend on our review of the grant itself.
Do you have a list of service providers or organizations you’d recommend as highly competent potential partners? We are in conversations with a few and working to curate the best-positioned team for this project. We just wanted to check in on this, and any preferences or suggestions are appreciated.
We don’t have a list to recommend. The RFP does discuss collaboration with BIPOC and/or local entities. THA has strong ties to the community and could potentially provide recommendations after knowing more about the firm’s definitions of highly competent partners.
This parcel was originally Phase IV- does THA still plan to redevelop the back building?
We are still having internal discussions about the redevelopment of that parcel. At this time, no decision has been made and there are no timelines set for a decision.
The RFP is asking for 150-200 units of housing which would essentially cover the entire parcel. The master plan envisioned ~46 mixed income units. The site included a festival street and open plaza. Are the festival street and plaza still desired by THA?
We would like to maximize the number of affordable units on the parcel. However, we will leave it to the development partners to determine the unit counts and mix based on their development plans. Assuming that a festival area or public plaza models the ethos of the original master plan, then THA would be thrilled to consider these types of amenities.
The sightlines of the site no longer emphasize the view of Mt. Rainier (assumed based on what is sought for the site and how the plan has changed).
The views of Mt. Rainier will vary depending on the parcel and the new development, while also taking into consideration new and recent construction on the TCC campus.
I believe THA /Mercy received CHIP funding for infrastructure. Is this for the entire JCN site or just the THA Mercy building? THA was going to put in storm water detention under the park that would support the site. Is that still the plan?
Clarification: The stormwater detention under the park is at capacity. The parcel that is included in the RFP would have to provide its stormwater plan. The electrical and sewer infrastructure has additional capacity. The developer of this parcel in this RFP could potentially tie into those two utility elements.
Can you tell us what other organizations/companies are considering replying to the RFP?
At this point, we don’t have a clear understanding of who is considering responding to the RFP.
To be competitive, do we need to have a design team selected prior to submitting a response?
No.
Do we need to provide massing plans?
#2 in the RFP asks proposals to describe the concepts. We are looking to you to decide how you’ll answer and illustrate your development concepts. #6 in the RFP calls for you to provide timelines for when designs and permitting would be completed.
What is the net cashflow for the building with the 5 existing leases? What is the proposed term of the pending business lease?
The pending lease is no longer under consideration. The approximate net cash flow for the retail building is as follows:
Estimated 2024 Net Operating Income for 1620 Mildred with 29% Vacancy Rate
| Tenant Name | Current |
| Suites | Occupied |
| Size (Sq. Ft) | 13,146 |
| Ext. 2024 Rent | $161,938 |
| 2024 NNN Rev | $68,328 |
| Expense Share | $110,852 |
| NOI | $119,415 |
It seems like the RFP is proposing a plan and goals that are not consistent with the original master plan. Has the master plan been revised? Which plan/goals carry the most weight- the original master plan or what is presented in the RFP?
The master plan is still a guiding document for vision and overall feel; however, the RFP details are prioritized. Around 2022, when THA and partners were forced to pivot to a slightly different development plan, we decided to remove the binding site plan as envisioned in the original masterplan and execute boundary line adjustments instead, creating separate developable parcels, which changed the site layout as represented in the original masterplan.
We are looking forward to pursuing this project with a non-profit developer partner, with interests align with the affordable housing effort for the area. That said, in reviewing the submission criteria in the RFP, we wanted to ask about the level in detail that should be presented to THA as part of our response. Is THA looking for proposed architectural solutions that correlates with the information available in the Aviva Crossing Masterplan, and if so, is there a level of detail that you are looking for to keep all submissions on par?
The level of detail we are looking for is conceptual, with the ability to be flexible. A couple of concepts for consideration would be ideal. Using the masterplan is a springboard for vision and designing architectural solutions is great but the masterplan is not intended to be a strict document in that regard.
Will THA consider a ground lease?
THA will consider an RFP where a developer delivers a 100% LiHTC building and THA leases the ground to the developer. THA may consider a ground lease for a different mix of funding.
Contact Information:
If you have any questions or require additional information, please contact Ginger Peck at gpeck@tacomahousing.org or at (253) 448-2726.
We look forward to receiving your proposal.